It’s hard to explain to folks just how bad our government’s finances are because the numbers are so staggering. This year, the federal government is spending nearly twice what it will bring in through taxes. It’s so much money that to balance the budget every taxpayer over $75,000 would have to be taxed at 100%!
Thank goodness that the Obama administration isn’t trying to raise taxes to that magnitude. But higher corporate taxes and energy taxes cannot put a substantial dent in the federal budget deficit.
I have to agree with George Soros (and huge Obama supporter) that the U.S. dollar is about to follow the British pound into an abyss. The net result will be slow economic growth and inflation, especially for food and energy. Stagflation appears to be inevitable, just like what happened in the mid-1970s after the 1973-1974 bear market.